DJ Sberbank: Sberbank reports 3Q 2017 Net Profit of RUB 224.1 bn, or RUB 10.33 per ordinary share, under International Financial Reporting Standards (IFRS)
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Sberbank (SBER)
Sberbank: Sberbank reports 3Q 2017 Net Profit of RUB 224.1 bn, or RUB 10.33 per ordinary
share, under International Financial Reporting Standards (IFRS)
15-Nov-2017 / 08:05 CET/CEST
Dissemination of a Regulatory Announcement that contains inside information according to
REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer / publisher is solely responsible for the content of this announcement.
Sberbank reports 3Q 2017 Net Profit of RUB 224.1 bn, or RUB 10.33 per ordinary share, under
International Financial Reporting Standards (IFRS)
15 November 2017, Moscow
Sberbank (hereafter "the Group") has released its interim condensed consolidated IFRS
financial statements [1] (hereafter "the Financial Statements") as at and for the 9 months
ended 30 September 2017, with review report by AO PricewaterhouseCoopers Audit.
Alexander Morozov, Deputy Chairman of the Executive Board, CFO, commented: "Increased
lending activity and strong focus on fee and commission income on the back of improving
macro-economic environment resulted in a solid quarter for the Group. Active asset and
liability management allowed us to optimise our funding costs, sustain asset yields and
thus report an improved margin.
The Group started reporting its capital position under Basel III standard resulting in a
common equity T ier 1 capital adequacy ratio of 11.0% at the end of the quarter."
The 3Q 2017 Financial Highlights:
- The Group net profit reached RUB224.1 bn
- The Group earnings per ordinary share (EPS) came at RUB 10.33, up by 62.4% compared to
3Q 2016
- The Group annualized return on assets (ROA) reached 3.4%, up from 2.1% in 3Q 2016
- The Group gross loan portfolio increased by 2.5% during the quarter to RUB19.5 trn,
with corporate loans up by 1.8% to RUB14.1 trn, and retail loans - by 4.2% to RUB5.4 trn,
with the mortgages portfolio increasing by 4.5% during the quarter
- The Group net fee and commission income came at RUB100.9 bn, up by 13.9% relative to 3Q
2016
- The Group Cost-to-Income ratio improved to 32.0% from 37.3% in 3Q 2016
- The Group started reporting capital position under Basel III standard: common equity
Tier 1 capital adequacy ratio came at 11.0% at the end of the quarter, while total
capital adequacy ratio - at 12.7%
Selected Financial Results
RUB bn, 3Q 2Q 3Q 2016 3Q17/ 3Q17/ 9M 2017 9M 9M17/
unless
stated
otherwise
2017 2017 2Q17 3Q16 2016 9M16
% % change %
change chang
e
Net 375.0 357.6 342.8 4.9% 9.4% 1 069.2 1 007.6 6.1%
interest
income
Net fee 100.9 94.9 88.6 6.3% 13.9% 276.2 251.7 9.7%
and
commissio
n income
Other 22.1 28.9 3.6 (23.5%) 513.9% 56.5 (3.9) --
non-inter
est
income[1]
Total 498.0 481.4 435.0 3.4% 14.5% 1 401.9 1 255.4 11.7%
revenues
Net (58.2) (89.1) (101.7) (34.7%) (42.8%) (214.6) (282.1) (23.9%)
provision
charge
for
impairmen
t of debt
financial
assets
Operating (160.4) (161.2) (163.0) (0.5%) (1.6%) (468.9) (475.6) (1.4%)
expenses
Net 224.1 185.6 137.0 20.7% 63.6% 576.3 400.1 44.0%
profit
Earnings 10.33 8.36 6.36 23.6% 62.4% 26.48 18.46 43.4%
per
ordinary
share,
RUB
Total 226.0 217.7 130.6 3.8% 73.0% 581.9 404.4 43.9%
comprehen
sive
income
Book 144.6 134.6 126.6 7.4% 14.2% 144.6 126.6 14.2%
value per
share*,
RUB
Ratios
Return on equity 28.4% 24.8% 20.5% 25.5% 20.9%
Return on assets 3.4% 2.9% 2.1% 3.0% 2.0%
Net interest 6.1% 6.0% 5.8% 6.0% 5.6%
margin
Cost of risk 120 191 bp 213 152 bp 195 bp
bp bp
Cost-to-income 32.0% 33.5% 37.3% 33.3% 37.5%
ratio
* Total equity / total numbers of shares outstanding (ordinary + preferred). Unaudited
Net interest income reached RUB375.0 bn in 3Q 2017, up by 9.4% from the year-ago period:
? Interest income (up 0.7% to RUB595.5 bn compared to 3Q 2016) dynamics were explained by
more upbeat lending volumes;
? Interest expenses including deposit insurance expenses decreased by 11.2% from 3Q 2016
to RUB220.5 bn;
? Furthermore, despite the declining interest rate environment, the yield on working
assets remained unchanged during the quarter at 9.7%;
? The cost of liabilities decreased by 10 basis points to 4.1% in 3Q 2017 relative to 2Q
2017.
The Group 3Q 2017 net fee and commission income came at RUB100.9 bn, up by 13.9% from the
year-ago period. The main drivers of this growth as compared to the same period a year ago
were banking cards operations net of applicable expenses that increased by 19.6% in 3Q 2017
from 3Q 2016.
Net provision charge for loan impairment for 3Q 2017 totaled RUB57.8 bn compared to
RUB102.1 bn for 3Q 2016. This translated into the cost of risk of 120 basis points for the
quarter versus 213 basis points a year ago.
? The cost of risk for corporate loans amounted to 140 basis points in 3Q 2017;
? The cost of risk for retail loans amounted to 68 basis points in 3Q 2017.
The Group operating expenses for 3Q 2017 decreased to RUB160.4 bn, down by 1.6% from the
same period a year ago as a result of cost discipline across main lines of the operating
expenses.
Selected Balance Sheet Results
RUB bn, unless stated 30/09/17 30/06/17 31/12/16 9M-6M 9M17-12M16
otherwise 2017
% change
%
change
Total gross loans, of 19 498.0 19 030.7 18 664.7 2.5% 4.5%
which:
Corporate loans 14 074.1 13 827.3 13 633.0 1.8% 3.2%
Retail loans 5 423.9 5 203.4 5 031.7 4.2% 7.8%
Restructured loans 1 188.1 1 286.0 1 209.1 (7.6%) (1.7%)
Securities portfolio 3 164.9 3 124.1 2 717.5 1.3% 16.5%
Assets 26 220.2 25 754.7 25 368.5 1.8% 3.4%
Total customer 19 161.5 18 914.1 18 684.8 1.3% 2.6%
deposits, of which:
Retail deposits 12 798.9 12 816.5 12 449.6 (0.1%) 2.8%
Corporate deposits 6 362.6 6 097.6 6 235.2 4.3% 2.0%
Ratios
Net loans-to-deposits 92.4% 91.0% 90.6%
ratio
NPL ratio 4.6% 4.6% 4.4%
NPL coverage ratio 157.2% 159.7% 157.3%
Restructured-to-gross 6.1% 6.8% 6.5%
loans
Total provision 80.6% 77.1% 74.6%
coverage of total
NPLs + restructured
non-NPLs
Total gross loans increased by 2.5% to RUB19.5 trn in 3Q 2017 as compared to 2Q 2017,
supported by both corporate loan portfolio increase (up by 1.8% during the quarter) and
continuing retail loan demand. Mortgages were up by 4.5%, consumer unsecured loan portfolio
was up by 3.2%, while credit cards and overdrafts portfolio was up by 6.4% during the
quarter.
Total customer deposits demonstrated an increase of 1.3% in 3Q 2017 as compared to 2Q 2017
driven by the inflow of funds from legal entities of 4.3%. The liquidity situation
continued to be excellent. The net loans-to-deposits ratio improved to 92.4% within the
targeted range of 90-100%.
Total NPL[2] ratio remained unchanged during the quarter at 4.6%. The coverage level of the
NPL portfolio came at 157.2% of total NPLs during the quarter.
The share of restructured loan portfolio of total gross loan portfolio came down to 6.1% in
3Q 2017 from 6.8% in 2Q 2017 as a result of regular work with distressed assets. The
provision coverage of total NPLs combined with restructured non-NPLs improved to 80.6% in
3Q 2017, up from 77.1% in 2Q 2017.
Selected Equity Position Results
Under Basel III 30/09/17 31/12/16 9M17-12M16
RUB bn, unless stated otherwise % change
Total Tier 1 capital 3 187.2 2 765.9 15.2%
Total capital 3 662.7 3 241.8 13.0%
Risk-weighted assets 28 862.9 27 028.3 6.8%
Credit risk 25 246.9 23 443.0 7.7%
Operational risk 2 736.0 2 736.0 unch
Market risk 880.0 849.3 3.6%
Ratios
Common equity Tier 1 capital 11.0% 10.2%
adequacy ratio
Total capital adequacy ratio 12.7% 12.0%
The Group total equity increased by 15.8% to RUB3.3 trn during 9M 2017.
The Group started reporting capital ratios under Basel III standard effective 3Q 2017. The
Group's total capital increased by 13.0% to RUB3.7 trn during 9M 2017 mainly as a result of
retained net profit.
The Group's risk-weighted assets increased by 6.8% to RUB28.9 trn during 9M 2017, driven
primarily by loan demand. The common equity Tier 1 capital adequacy ratio increased by 80
basis points to 11.0% during 9M 2017. The total capital adequacy ratio (Basel III)
increased by 70 basis points to 12.7% during 9M 2017.
[1] Other non-interest income consists of Net gains from trading securities; Net gains from
securities designated as at fair value through profit or loss; Net gains from investment
securities available-for-sale; Impairment of investment securities available-for-sale; Net
(MORE TO FOLLOW) Dow Jones Newswires
November 15, 2017 02:06 ET (07:06 GMT)
gains / (losses) gains from trading in foreign currencies, operations with foreign currency derivatives and foreign exchange translation; Net gains / (losses) from operations with precious metals, precious metals derivatives and precious metals accounts translation; Net gains / (losses) from operations with other derivatives; Impairment of premises, equipment and intangible assets; Goodwill impairment; Net gains on initial recognition of financial instruments, loans restructuring and sale of loans; Net charge for other provisions; Revenue of non-core business activities; Cost of sales and other expenses of non-core business activities; Net premiums from insurance and pension fund operations; Net claims, benefits, change in contract liabilities and acquisition costs on insurance and pension fund operations; Other net operating income. [2] Non-performing loans more than 90 days overdue ISIN: US80585Y3080, RU0009029540, RU0009029557, US80585Y4070 Category Code: QRT TIDM: SBER LEI Code: 549300WE6TAF5EEWQS81 Sequence No.: 4861 End of Announcement EQS News Service 629361 15-Nov-2017 1: http://public-cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=1e819651963aa5ac40892618e77ee3c5&application_id=629361&site_id=vwd&application_name=news
(END) Dow Jones Newswires
November 15, 2017 02:06 ET (07:06 GMT)
